Cryptocurrency Exchanges have become a driving force for decentralized finance over the years. Among the list of numerous crypto exchanges, there’s Coinbase. Coinbase is a popular cryptocurrency exchange that supports buying and selling and makes crypto exchanging Seamless.
Bitcoin and other popular cryptocurrencies actually constitute the bulk of majorly traded Cryptocurrencies and have proven to be in most trading pairs. Coinbase makes these transactions as easy as possible. The Cryptocurrency Exchange provides hassle-free features that are quite suitable for crypto beginners. And with its large support for lower cap Cryptocurrency, trading is made more effective. Similarly to KuCoin.
A recent update surfacing the crypto net shows that Coinbase is laying off roughly 1,100 employees as part of its plans to utilize and maintain the cost of running the exchange, this was made known to the public on Tuesday.
The exchange the last couple of months had been seen staging a back-and-forth movement as regards its hiring plans. Coinbase released a statement in May about paring back its plans to hire workers, then later declared its intentions to rescind new job offers.
Coinbase recently camper up with a plan to reduce its workforce by up to 18% of its total number of employees as of June 10.
This would reduce its team force to about 5000 employees in total. Shedding more light on the decision, Coinbase said it expects the plan to be fully executed by the end of the second quarter. This would cost the Cryptocurrency Exchange Over $40 million in terms of restructuring expenses.
The CEO of Coinbase; Brian Armstrong shared with the Coinbase employees a publication that read:
“We appear to be entering a recession after a 10+ year economic boom,” and went further to describe that Coinbase grew too quick in the bull market while it lasted. Jumping from 1250 employees in 2021.
The unfortunate news came to the 1100 laid-off employees as mails from Coinbase to their Personal email box after access was retrieved from Coinbase systems
The decision taken seems stringent but wise as Coinbase has lost almost 80% in shares as the transaction volume of Cryptocurrencies have dropped humungous
Shares of the crypto exchange have risen by 1% in pre-market trading since the layoff was effected. On Tuesday morning, shares of Coinbase rose about 1% in pre-market trading after the layoff news was announced.
Mihuzo said in a statement that Coinbase cutting workers implies more difficulty in finding new streams of income for the exchange.
Could these have been a good track to a chart or rather too impulsive a decision.